MBA423 BANKING & INSURANCE MANAGEMENT

Objective: This course aims at enabling the students to understand and to contribute to the
strategic operational policies and practices of commercial bank management and insurance in a
competitive environment.

UNIT - I
Introduction –– Origin & Development - Evolution and growth of banking system in India –
Present Structure, Types of Banks, Scheduled and Non-Scheduled Banks, Roles of Banks (viz.
Intermediation, Payment system, Financial services), Banking Regulations, BASEL Norms.

UNIT - II
Banker-Customer Relations, KYC guidelines - Different deposit products - Mandate and Power
of Attorney, Banker’s Lien, right of set off - garnishee order, attachment order etc. - Payment of
collection of cheque - duties and responsibilities of paying and collecting banker – protection
available to them under NI Act - Endorsements, forged instruments - bouncing of cheques and
their implications. Opening of accounts for various types of customers - Principles of Lending -
various credit products / facilities - working capital and term loans - credit appraisal techniques -
approach to lending - credit management, credit monitoring, NPA management

UNIT - III
Bank Management: Liquidity Management, Investment Management , Loan Management ,
Liability Management, Credit Management, Risk Management

E-Banking - Core Banking - Electronic products - Electronic payment system - Online Banking -
Electronic fund transfer system: RTGS, NEFT & SWIFT, Mobile Banking.

UNIT – IV
Basics of Insurance : Indemnity, Insurable interest, Materiality of facts, Duty of disclosure.
Types of Insurance : Life Insurance, General Insurance, Health & Medical Insurance, Property
related Insurance, Liability Insurance, Reinsurance. Principles governing marketing of insurance
products. Insurance Regulation and Role of IRDA.

UNIT – V
Insurance Management: Definition of Risk, Classification of Pure Risks: Personal Risks,
Property Risks, Liability Risks, Failure of Others, Overlapping Risks; Rules of Risk
Management, Risk Management Technique, Risk Management Process: under writing TPA basic
assessment, claim management of claim settlement.

Suggested Readings:
1. Principles & Practices of Banking - By Indian Institute of Banking & Finance -
Macmillan Publication.
2. Management of Banking & Financial Services by Padmalatha Suresh, Pearson India
Publication.
3. Commercial Bank Management by Kanhaiya Singh & Vinay Dutta, TMH India.
4. Insurance Management, S.C.Sahoo & S.C.Das.
5. Banking and Insurance, Mohapatra and Acharya, Pearson India